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The came periodic report As Bank of Italy on the economy of Lombardy, according to this year the normal results of the region were not much higher than the national average, and in fact it complied well with Italian trends in general, especially because of the wide diversity decline in business and exports.
However, the report was given a rather extreme reading, as much of the media focused only on a statement – indeed strange, given the way it was put – by the director general of the Milan branch of the Bank of Italy Giorgio Gobbi, what he was for a while. the presentation he said that “Lombardy is no longer the locomotive of Italy”, that is, the sector whose products are able to drive the growth and economic development of the entire country. A political dispute arose that also involved the president of Lombardy Attilio Fontana, who in a rather subtle way asked the Bank of Italy to reveal “who is the new driving force in Italy”.
The phrase “Italian locomotives” clearly has no technical or scientific basis in economic research, but it is an image that is widely used because it sums up well the an important role that a sector or region can have in an economy: the locomotive, at least in traditional train models, the first vehicle, the one inside that contains the engine and the guide.
In economics, as the metaphor has established itself in language, it is not only the region or sector that grows the most or that creates the most work that is a “locomotive, but also the one where most innovation and research takes place, for example. , and where the foundations are thus laid for the development of the entire country and its future path. It is an expression that has also been used for decades to talk about Germany, the “locomotive of Europe” which has promised the growth and development of the industrial machinery of the entire continent and which today is struggling to maintain this position because economic problems increasingly structured.
Lombardy held somewhat the same position for Italy. In quantitative terms it generates more than 20 percent of Italy’s Gross Domestic Product, the most effective indicator for establishing the size of an economy. In 2023 the regional GDP was at 480 billion euros, a size that competes with the size of all European states more than the regions of other Italian regions: it is twice the level of Greece, just to give one example. If she were considered a country, Lombardy would be tenth of the European Union by GDP, ahead of Austria, Denmark and Romania, among others.
Compared to 2019, Lombardy was one of the European regions that grew the GDP the most: between 2019 and 2023 it increased by 6.7 percent, more than the Italian average of 4.6 percent and more than what happened there other European countries, such as Spain (3.6 percent). per cent), France (2.4) and Germany (0.5).
More than a sixth of Italy’s population lives in Lombardy, almost a fifth of employed people work there, and 26 percent of Italian exports abroad coming from here.
In Lombardy, rather intangible mechanisms were then promoted that contribute to development, and not only to economic growth: several research centers, companies and multinationals have established themselves here and investment in the field, creating links between professionals and gradually more specialized that will promote its ethical circle. The reputation of the universities has grown. This is the Italian sector where most investments in research and development are in the public and private sector: I am 5.4 billion euros per year, about a fifth of the national total.
In short, even if some economic variables have become worse than usual in the last two years, the importance of the economy of Lombardy within the Italian for both the growth and the development of Italy remains sure In this case, as also reported by the same Bank of Italy report, “worse than normal” means that, instead of having become better than the average, it seems to the economy of Lombardy in 2024 has followed the same national rhythms. It is a sign of a slowdown in the economy, and that does not mean decline and that does not suddenly eliminate the various characteristics that made many describe him as a “locomotive” for the rest of the country.
The Bank of Italy has estimated growth in the Lombardy economy of 0.4 percent for the first half of 2024, online with Italian growth. Exports decreased, especially those to the United States and euro area countries. There has been a significant drop in exports to Germany, mainly due to lower sales in industry and vehicle components, both sectors highly integrated with the German ones, in a very serious crisis. Lombardy’s industrial output has been declining in the past year, however less than Italy’s figure.
The construction sector also became smaller than before, above all due to the reduction in construction bonuses, which had promised a special increase in Lombardy and throughout Italy. The real estate sector is not doing as well as in previous years, when it benefited from low interest rates on mortgages. In the second quarter of 2024, the sale of houses will take place in Milan they have declined by 7 percent compared to the previous year: it is also the Italian city where house prices are they are higher and where they have increased more in recent years.
Employment has continued to grow, even though there are conflicting data in the industrial sectors: the total hours worked in the sector have decreased, while at the same time the redundancy payments have gone up It means that with the decline in industrial production, there is already a reduction in the activity of plants and workers.
Since the last quarter of last year, the disposable income of residents in Lombardy has started to rise again, and it has also done so in real terms, i.e. in terms of what can be done and to buy: according to the Bank of Italy in the first half of 2024 it increased by 2.7 percent compared to the same period of the previous year, against the Italian average of 2.3. However, this increase hardly made it possible to compensate for the decrease in purchasing power which had been there in the previous two years.
In any case, the second one the latest data of the Ministry of Economy on tax returns (those in 2023 on income 2022) Lombardy is the region with the highest average certified income, equal to almost 28 thousand euros, compared to the Italian average of 23,650 euros.
– Read also: Has the government increased taxes?
2024-11-23 13:33:00
#Lombardy #locomotive #Italy #Post
**The article mentions a decline in industrial production within Lombardy. Taking into account global trends and the region’s strengths, what potential new economic sectors might Lombardy explore to ensure future growth and prosperity?**
## Open-Ended Questions for Discussion on Lombardy’s Economic Performance
This article explores the complex economic landscape of Lombardy, questioning its continued designation as the “locomotive” of Italy. The following open-ended questions aim to spark discussion and encourage diverse viewpoints on key themes:
**I. Lombardy as the “Locomotive”: Symbol vs. Reality**
1. The article points out that the metaphor of the “locomotive” lacks scientific basis. What are the strengths and weaknesses of using metaphors like this in economic discourse? Does it contribute to a simplified understanding of complex issues?
2. While Lombardy holds a significant share of Italy’s GDP and exports, the article highlights that its growth has slowed. Does this slowdown mean Lombardy has lost its status as the “locomotive”? How can we define this role in a more nuanced way?
3. If Lombardy is not the sole “locomotive,” what other regions or sectors in Italy show promise for driving economic development? What factors contribute to their potential?
**II. Economic Performance and Key Indicators**
1. The article highlights both positive and negative indicators in Lombardy’s recent economic performance. What are the most significant challenges facing Lombardy’s economy, and what are its strongest assets?
2. How does the decline in industrial production and construction activity impact Lombardy’s overall economic sustainability? What strategies could be implemented to address these challenges?
3. The real estate market in Milan shows signs of slowdown. What are the potential long-term consequences of this trend, and how might it affect Lombardy’s economy as a whole?
**III. Future Outlook and Policy Implications**
1. What factors will be crucial for Lombardy to regain its economic dynamism and continue contributing significantly to Italy’s growth?
2. What role can the Italian government play in supporting Lombardy’s economic development? Are there specific policies that could be implemented to address the challenges identified in the article?
3. How can Lombardy leverage its strengths in research and development to foster innovation and create new economic opportunities?
**IV. Regional Disparities and National Development**
1. The article mentions Germany as another “locomotive” facing economic challenges. How can regions within a country work together to ensure balanced economic development and reduce regional disparities?
2. What lessons can Italy learn from other countries in terms of fostering inclusive economic growth and ensuring that all regions benefit from national prosperity?
3. How can addressing the issue of income inequality contribute to a more sustainable and prosperous future for all regions in Italy?
These questions are designed to encourage critical thinking and informed discussion about Lombardy’s economic reality and its implications for Italy as a whole.
